when the chickens come home to roost

Shortcuts are like chickens; they always come home to roost.

One result of the current state of the real estate market, is buyers taking unnecessary risks in the most significant purchases of their lives, by waiving financing and home inspection conditions. Post-purchase inspections are on the rise and although some of them are requested by homebuyers simply seeking advice on how to maintain their new homes, a lot of them are solicited by buyers unhappy with their purchases, and who are looking for information to support a lawsuit against sellers and possibly Realtors.

Another risky practice is the business of home inspectors conducting limited inspections, also known as “walk-throughs” or “walk-n-talks,” or sometimes “5-point inspections.” These abbreviated inspections, often completed without written reports, fall short of the standards expected of a professional home inspector. These kinds of inspections do little to serve homebuyers and can lead to increased liability for both the inspector and the referring Realtor. A shortcut by any other name is still a shortcut, and shortcuts are like chickens - they always come home to roost.

More homeowners seeking litigation after buying without conditions, lawyer says


Canada’s Housing Market is Unhinged

More than 10 per cent of Canada’s GDP is generated by residential real estate transactions, renovations, ownership transfer costs and real estate commissions. Canada’s housing investment represents a bigger share of the economy than almost any other country, and in fact exceeds the amount of business investment in Canada.

That means Canadians are spending more on where they live, than what the entire country makes or produces. This is unsustainable and will set us up to be unable to pay for where we live.  

When interest rates begin to climb, homebuyers who paid through their noses from 2018 to 2021 will be faced with higher mortgage rates. Even a modest increase of 1 or 2% can increase the mortgage payment for an average-priced home in Canada by hundreds of dollars per month. That can translate to hundreds of thousands over the life of the mortgage. 

Think it’s not possible? If you were around in the 1980’s you will recall mortgage rates of 18%. Banks were “competing” for an eighth of a percent… I recall securing a car loan for 22.375% in 1982.

Coupled with overall inflation affecting everything from food to utilities, and lagging family incomes, we shouldn’t be surprised to see a wave of delinquent mortgages and foreclosures. And it may be difficult for homeowners to sell their properties at prices high enough to clear the debt of their inflated purchases. 

Being saddled with unexpected repairs and maintenance can drastically increase the debt load of the average homeowner, and high prices and higher interest rates will make these homes even more unaffordable for prospective purchasers. What then?
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Whew!  Talk about the chickens coming home to roost!